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Renewal prices are too high - do you price match?


I am a Pay monthly customer.

I have looked at my usage, and used Money supermarket to asses other suppliers as well as OVO and the renewal offers.


OVO is around £200 more expensive PA than the cheapest and £140 more that the cheapest that i would consider.

But...

I dont really want to leave OVO, Can you help me out with the prices? I am prepared to sign up for a 2year fixed if you can offer me something to close the gap on price?

If nothing else this post must be worthy of a discount, simply because it doesnt involve the yawn fest that is smart metering.
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Best answer by stateofit 25 March 2017, 08:13

It's a crazy time in the energy market. The wholesale price of gas and electricity has gone rocketing up in the last 8 months or so (Yes, I look up stuff like this, I'm abit sad...). Beginning of 2016 prices were very low, and have just gone up and up since June, and are apparently still going up...

One of the things I really like about OVO is the fair and honest pricing policy : The unit rates are amended to match the wholesale price, so last year when prices Fell many energy companies rubbed their greedy hands with glee while OVO dropped prices almost immediately. This year energy costs more so prices have to go Up...

There's a worrying trend in energy now with some companies doing those "cheap deal for new customers only" type of deals, like they've done in insurance for years. They hook you in with a good rate, only to find that you can't have the same deal next year cos your "not new business anymore". They rely on people forgetting to do something about it, and then you're on a high cost tariff again. Horrible way to treat customers. And I can only assume that the higher cost tariff help pay for the cheap deals...

OVO give everyone the same price so it's fair. I know that no-one's getting a better deal than me cos they arrived more recently or pretended they wanted to leave... I really respect that, and while I did see a few cheaper deals around my renewal in December I happily sucked up the higher rates this year, cos I doubt very much that Bob's Discount Energy have a great website, simple bills or a forum like this...

And didn't an energy company go under last year? GB...? I'm fairly certain they tried to offer cheap deals to win business and got caught out by the rising costs. Somehow I don't think that's gonna be an issue with OVO, they seem to know what they're doing...

**Updated 24/07/2019**
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55 replies

Switching here too - OVO's renewal prices were expensive a few weeks back but have shot up again since then.

Bulb's price is almost the same price as the 2yr fixed rate OVO deal that's expiring.
I think you will find that you revert to OVO's standard variable tariff until the switch is complete.
OK I switched today.
They say it will take up to 21 days - I have 10 days left on my current plan
What happens at day 11 if the switch hasn't completed?
Userlevel 3
Well, unfortunately I'm going to be saying goodbye. Coming to renew now, and compared to what I was quoted 21 days ago, has now shot up by a further £200/year, bringing it to an eye watering £1831.14 a year!!! That brings my monthly costs from £101/month, to £152.60/month! Sorry, but that is absolutely ridiculous!

Not only are the kWh rates not as competitive as many other providers (including the 'big 6'), but the standing charge is one of, if not THE, most expensive one out there at 27.4p/day fir both electricity AND gas!

Bonkers...
Userlevel 7
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Appreciate prices have gone up this year @raddy59, if you signed up 2 years ago, prices were a lot lower back then, and to deliver a sustainable business to support our customers and services, we won't offer loss leading tariffs.

Might be worth checking out this OVO renewal topic, as others have been discussing this and we've been detailing why we think OVO is worth the little bit extra.
Renewal was based on last years usage - can easily renew at my old rate (£76/month) on any comparison site, numerous suppliers. I think OVO have lost the plot. The rates are up by 30% per fuel on average, plus I will pay 54p/day standing charge (27p per fuel). Bearing in mind fuel prices are forecast to drop i n October.
Userlevel 7
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Hey @raddy59 based on the time of year and knowing that we are all going to start using more energy over winter, the new DD will be worked out based on that. Obviously if you are giving monthly readings etc and not using as much as we think you will (based on your previous usage), you can go into your account an adjust your DD amount.

I renewed with OVO 2 weeks ago, and it advised on the renewal page that my DD will go up a bit, but I know actually after winter, I'll be able to reduce it down again once I start using less, therefore balancing out the overall cost over the contract length.

Hope this helps.

Darran
OK - tried that today, and the renewal amount is +£20 (so I am £100 in credit, and the new plan will be £240 per year more). Guess its goodbye OVO...
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In that case, @raddy59, I'd get in touch with us to renew over the phone. Call the team on 0330 303 5063 when you can (we're open 9am-5pm today) and they'll be able to check the Direct Debits and get the renewal processed at the current Direct Debit amount.

Thanks,
Ed
The unit rates have changed, but not by much. The new dd for renewal is specified in my renewal notice - it is +£10 ! So, if I think this is too much, how do I renew maintaining my old DD amount? If I plug in my annual KWh usage rates into comparison sites it works out more or less what I'm paying currently - £76.
Userlevel 5
Your Direct Debit isn't increased when you renew with us, @raddy59. The suggested amount doesn't take any current credit/debit balances into consideration. The unit rates may have changed since your last contract with us.
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@ErTnEc Only you can decide whether Ovo (or any other) supplier is right for you.

I stated in a previous post that I was moving to Bulb for precisely the reasons you give: Ovo's tariff.

However, I changed my mind during the cooling off period and decided to stick with them.

For me, it was mainly the annoyance of having a SMET1 first generation smart meter and losing all functionality. So a slow handclap to the originators of that piece of kit for inhibiting customer movement. 😡

All things considered though, to be fair to Ovo, even though they really want us to "get in touch via social media" -- an anathema to me -- they have always come good when I've had to deal with them in the past. Bulb remain an unknown in this regard.
OK - my 2 year plan is due up in a month
I am paying £76/month dual fuel
I am currently in credit to the amount of £87 (will go up higher on DD day in 2 days)
Renewal quote - where the prices are not that different - is £86
The only major difference is en extra 3p on the electric KWh. I used 3000 last year - so £90

What is going on?
Userlevel 3
Yeah I'm really finding it hard to convince myself to stay. I originally joined in 2017, and my fixed rate ends on the 28th September. Currently I pay £1318/year, and the new projection for the 'cheapest' fixed rate is £1628/year. The cheapest I've found using the usual comparison sites is sitting at £1407/year projected, and even some of the big 6 are coming in under the projected renewal from Ovo...

The only thing putting me off from switching supplier, is the absolute nightmare I have when changing supplier, as when I switched to Ovo from Scottish Power, it took 3 Months to complete, as I'm on an IGT, and it just took a stupidly long amount of time! I had the same issue when moving supplier before then too, with an equally absurd length of time to sort out...

So...

Do I stay with Ovo, knowing I can save just shy of £200 over the year, but expect a 3 month wait to sort out the switchover due to being on an IGT and revert back to a 'Dumb' meter which I won't even know if I can still bond a CAD to.

The other option is to switch to Octopus, as both have you have teamed up with Monzo to give a cashback incentive if you switch, and they say that my current meter should work fine with it being made by Secure... but again, is that worth the hassle of transferring due to the IGT...
@Amy_OVO The interest reward is good but I'd have to put in £8k to recoup the £400 which I don't even think is possible ;-)

Thank you for you kind words - and yes I hope to be back. This is the end of my second stint with Ovo and both times I've left because of pricing. I think this just emphasises the market is truly broken as you don't want me to switch, I don't want to switch but we have to do this dance every few years 🙂
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It's a shame to hear you're leaving, @Organic.

We don't offer different prices to our customers based on tenure, this wouldn't be in line with us priding ourselves on transparency.

We do however, reward our loyal customers, they are very important to us. Our OVO Interest Reward is our way of thanking our customers for their loyalty. You'll start with a 3% reward in your first year, before we increase it to 4% in year two, and 5% the following year. Essentially, the longer you stay with us, the more we'll say thanks.

If our rates are more favorable for you in the future please keep us in mind.

Thanks!
Add me to the list of people leaving because I find Ovo hundreds of pounds higher than competitors at renewal time.

This is a shame because Ovo have been good. But even good service isn’t worth £400 a year 😞
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I've just signed up with Bulb Energy as my electric (in particular) and gas tariff with Ovo was due to go up by an eye-watering amount once my 2-year fixed contract ended. I think I've been with Ovo for four years now and have noticed a decline in both quality of service (the whole "reward" saga for example), and a disinterest in pricing competitiveness, and that's before we talk about one of the highest daily standing charges in the energy market.

If you use MoneySavingExperts' Cheap Energy Club, it's easy to see how much Ovo's tariff has increased and other suppliers' customer satisfaction has risen.

I am going to have to read my own smart -- soon to be dumb -- meters until the whole SMET1 fiasco is resolved. This is not Ovo's fault of course, but reading my own meters with Bulb Energy saves me £300 - £400 per year at current Ovo / Bulb Energy rates and that's not to be sniffed at.

All that said, I'm a bit sad to leave Ovo, as in many ways, despite my criticisms, they at least make an effort to deal with customers fairly, and that's not something that can be said of all energy suppliers.
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Welcome to the forum, @GaryF, I've moved your post here, there is a lot of handy info in the thread.

Please check out @stateofit's best answer.

Hope this helps!
I have been with OVO just over 2 years and my 2 year fixed rate deal ends in mid August, in that time I have got both my son and daughter onto OVO, service is good and we all have Smart meters so very easy to manage. I am on a very good deal so the new 2 year deal on offer is a lot more expensive which I can understand. What I do not understand is my daughters deal ended in mid June and she is on a new one year deal and rates are much lower than what is now on offer and I mean it is a substantial change. Should I just keep looking at your system for any new deals as you do seem to change regularly, I really do not want to leave OVO
Userlevel 6
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Hi @Sunningdale Power Station - I've moved your post onto this thread about renewing your contract. You should be able to find more info about why our prices might have increased on here.

Thanks
Long term customer of OVO

Even with online and maximum credit at 5% new proposed tariff is well above the market.

Have a second property too, and FITS (payment is slow on this) so disappointed to have to leave.
OK, thanks for getting back to me. £300 a year makes a difference. Thank you for providing good service thus far.
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Hi @Andy-S,

We don't price match or undercut other companies, as we believe in fair pricing. This means the rates we offer are the same for everyone. The rates we've offered you for your renewal would be the same as a new customer signing up in your area.

Cheers
Hello all,
does anybody know is it possible to negotiate renewal price with OVO? They have offered as their renewal rates:
Unit Rate = 15.78p/kWh excludes VAT
Standing charge = 27.40p/day excludes VAT

While one of those comparison sites recommended a provider that charges
Unit Rate = 13.87p/kWh excludes VAT
Standing charge = 17.85p/day excludes VAT
(it is also 12 months fixed plan)

I like how hassle free OVO is so would like them to come closer to those rates, is that possible at all?

Thanks in advance!
Andy

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